WEBVTT - Bloomberg Daybreak: January 7, 2022 - Hour 1 (Radio) 0:00:02.560 --> 0:00:05.840 By from the Bloomberg Interactive Burger Studios. This is Bloomberg 0:00:05.920 --> 0:00:09.879 day Break for Friday, January seven. Coming up this hour, 0:00:10.119 --> 0:00:13.480 the Northeast faces its first major winter storm of the year. 0:00:13.720 --> 0:00:17.520 Wall Street awaits the highly anticipated December jogerport. A top 0:00:17.600 --> 0:00:19.880 feede official weighs in on rate hikes as soon as 0:00:19.960 --> 0:00:23.000 March and game stops surges. On News, it's getting into 0:00:23.120 --> 0:00:26.599 non fungible tokens. Road crews are busy treated streets for 0:00:26.680 --> 0:00:29.720 the snowy morning commute. Plus it's sentencing day in Georgi 0:00:29.720 --> 0:00:32.200 Effrey with three white men in the murder of About Aubrey. 0:00:32.440 --> 0:00:35.560 I'm Lacla bar More, I'm Don Stairs, Sharon's boards. A 0:00:35.640 --> 0:00:38.040 big comeback is shot at the Buzzer and the nixt 0:00:38.040 --> 0:00:44.360 beat the Celtics. The Devil's won the Rangers long. That's 0:00:44.400 --> 0:00:48.680 all straight ahead on Bloomberg day Break on Bloomberg eleven, TREEO, 0:00:48.800 --> 0:00:54.160 New York, Bloomberg Washington, d C, Bloomberg one O six one, Boston, 0:00:54.320 --> 0:00:58.800 Bloomberg nine six, San Francisco, Sirius x M one nineteen 0:00:59.160 --> 0:01:01.880 and around the world Old on Bloomberg Radio dot Com 0:01:02.000 --> 0:01:09.040 and via the Bloomberg Business at Good morning. I'm Nathan 0:01:09.080 --> 0:01:12.720 Hagar and I'm Karen Moscow. SMP Future is higher ahead 0:01:12.760 --> 0:01:14.880 of today's jobs report. We're coming up to five oh 0:01:14.880 --> 0:01:16.640 one on Wall Street, and we check the markets every 0:01:16.640 --> 0:01:19.920 fifteen minutes throughout the trading day. On Bloomberg, SMP Future 0:01:20.000 --> 0:01:22.920 is up five points down, Future is up forty NASAC 0:01:23.000 --> 0:01:25.640 Future is little change, and your treasury down one thirty 0:01:25.720 --> 0:01:28.640 second killed one point seven two percent. The yield on 0:01:28.720 --> 0:01:31.759 the two year point eight seven percent, and Bitcoin this 0:01:31.800 --> 0:01:35.040 morning at forty two three hundred dollars. Nathan, all right, Karen, 0:01:35.080 --> 0:01:36.880 we'll have more on the markets in a minute. First, 0:01:36.880 --> 0:01:39.959 a snowstorm is blanketing the northeast this morning. Let's get 0:01:40.000 --> 0:01:41.840 to the details and how it may affect the roads. 0:01:41.880 --> 0:01:45.839 From Bloomberg Meteorologist Rob Carolyn. Good morning, Rob, Good morning, Nathan. 0:01:45.840 --> 0:01:47.920 The storm that's in the process of developing off the 0:01:47.960 --> 0:01:50.560 coast of southern New England. While it's already brought some 0:01:50.600 --> 0:01:52.720 snow to the district in Baltimore. Though the storm is 0:01:52.760 --> 0:01:56.080 about done there, they'll have very little additional accumulations. In fact, 0:01:56.160 --> 0:01:58.320 the sun will be coming out quickly this morning. New 0:01:58.400 --> 0:02:01.040 York City, hendy additional accumulation is this morning or under 0:02:01.080 --> 0:02:03.040 two inches. The snow should be done in the Tri 0:02:03.160 --> 0:02:05.640 State area by about midday, and as we head up 0:02:05.640 --> 0:02:08.360 into Boston there, the storm is only getting going now. 0:02:08.760 --> 0:02:10.919 We'll be dealing with snow heavy times through the morning 0:02:10.919 --> 0:02:14.040 commute and into the midday hours. It looks like Boston's 0:02:14.040 --> 0:02:17.240 probably gonna receive the highest totals from this storm. Okay, Rob, 0:02:17.320 --> 0:02:19.800 So what kind of accumulations are we thinking we're gonna 0:02:19.800 --> 0:02:22.760 get from this storm? Nathan, No additional accumulations in the 0:02:22.800 --> 0:02:25.360 district of Baltimore and New York City. Anything that falls 0:02:25.440 --> 0:02:27.840 is under two inches this morning, and in the Boston 0:02:27.919 --> 0:02:30.919 area four to seven inches is likely. I'm Rob, Caroline 0:02:30.960 --> 0:02:33.440 Bloomberg daybreak. All right, Rob, thank you, and of course 0:02:33.440 --> 0:02:35.600 we'll be checking in with you throughout the morning. But 0:02:35.680 --> 0:02:37.760 first let's turn to the market. So we're camping off 0:02:37.760 --> 0:02:41.600 a volatile week with a highly anticipated jobs report for December. 0:02:41.919 --> 0:02:45.440 Estimates call for payroll gains of four hundred forty seven thousand. 0:02:45.680 --> 0:02:49.880 Hereth Moras, Bloomberg Economics corresponded Michael McKee. Two questions hang 0:02:49.960 --> 0:02:53.400 over the December payrolls report. Will there be an omicron effect? 0:02:53.639 --> 0:02:55.520 And how will the FEDS see the report in the 0:02:55.560 --> 0:02:58.320 context of policy moves. The survey week was in the 0:02:58.320 --> 0:03:01.520 first half of December, before the COVID variant dominated the 0:03:01.560 --> 0:03:05.440 news or infections. ADP says it didn't affect hiring all 0:03:05.480 --> 0:03:08.920 that much, reporting a big gain in leisure and hospitality jobs, 0:03:09.120 --> 0:03:12.360 but the I s M Services Index suggests services hiring 0:03:12.480 --> 0:03:16.080 slowed during the month. The December fifteen FED minutes released 0:03:16.080 --> 0:03:19.480 this week show policymakers felt then the US was close 0:03:19.520 --> 0:03:22.639 to full employment. If that's ratified by the monthly jobs report, 0:03:22.840 --> 0:03:25.840 it may mean the Fed is ready to start raising rates. 0:03:26.080 --> 0:03:28.640 Michael mckeed Bloomberg Daybreak. All right, Mike, thanks, So when 0:03:28.639 --> 0:03:31.520 it comes to FED policy, St. Louis President Jim Bullard's 0:03:31.520 --> 0:03:34.200 weighing in enforcing the view the rate hikes could start 0:03:34.240 --> 0:03:38.360 this spring. The FENC could also begin raising the policy 0:03:38.440 --> 0:03:41.760 rate as early as the March meeting in order to 0:03:41.840 --> 0:03:46.560 be in a better position to control inflation. Jim Bullard 0:03:46.600 --> 0:03:49.040 made the comments to the c f A Society in St. Louis. 0:03:49.040 --> 0:03:52.480 He's traditionally one of the most hawkish members of the FED. Well, Nathan, 0:03:52.560 --> 0:03:55.200 jobs matter to the FED, but so does the pandemic 0:03:55.240 --> 0:03:58.360 coronavirus cases continue to come in near record highs, and 0:03:58.400 --> 0:04:02.360 testing remains a challenge. Abbit Laboratory CEO Robert Ford tells 0:04:02.440 --> 0:04:05.800 US he's ramping up production of COVID tests. We've seen 0:04:05.920 --> 0:04:10.720 obviously a new variant, pretty highly transmissible variant, in combination 0:04:10.920 --> 0:04:12.440 with a period of the year where there's a lot 0:04:12.520 --> 0:04:16.880 of travel, Thanksgiving and Christmas people wanted to get together. Uh, 0:04:17.040 --> 0:04:19.880 the combination of those two factors really had a pretty 0:04:19.960 --> 0:04:24.360 unprecedented demand here. Abbot CEO Robert Ford says the company 0:04:24.400 --> 0:04:27.640 expects to produce seventy million tests this month. The White 0:04:27.640 --> 0:04:29.679 House in the U. S. Postal Service are making final 0:04:29.720 --> 0:04:33.040 plans to deliver a half billion test hits to household skaren. 0:04:33.040 --> 0:04:35.480 That's according to The Washington Post, which says they want 0:04:35.480 --> 0:04:37.600 to begin shipping tests by the middle of this month. 0:04:37.640 --> 0:04:40.760 An official announcement could come next week. From New York 0:04:40.800 --> 0:04:44.080 to l A. Nathan, major metro areas across the country 0:04:44.080 --> 0:04:46.520 are getting hit hard by COVID. Some of the details 0:04:46.560 --> 0:04:50.880 now from Bloomberg's at Baxter Beginning in Chicago. Almost of 0:04:50.920 --> 0:04:53.520 the city's I you beds are occupied at his canceled 0:04:53.520 --> 0:04:57.120 classes for a third day because of cases and disagreement 0:04:57.160 --> 0:05:00.760 with teachers over COVID tests. Meanwhile, New York City expects 0:05:00.800 --> 0:05:03.680 to have two and a half million more at home 0:05:03.720 --> 0:05:06.560 tests in hand today, but they are going for the 0:05:06.640 --> 0:05:10.360 reopening of schools. In Los Angeles cases of Sideline more 0:05:10.360 --> 0:05:14.000 than eight hundred police and firefighters, and Alaska Airlines cut 0:05:14.040 --> 0:05:17.960 one twenty flights yesterday and according to flight Aware and 0:05:18.160 --> 0:05:22.760 industry wide, almost two thousand flights because of employee illness 0:05:22.800 --> 0:05:26.560 combined with weather in San Francisco. I'm at Baxter Bloomberg 0:05:26.600 --> 0:05:29.240 daybreak all right, and thanks with flights canceled, the travel 0:05:29.279 --> 0:05:33.720 industries under pressure again. Marriott president Stephanie Leonard says, these 0:05:33.720 --> 0:05:36.800 are real challenges, but they won't derail the recovery. And 0:05:36.839 --> 0:05:39.920 while there was bumps from Delta, the business came back 0:05:40.000 --> 0:05:42.760 very clear, very quickly when we got past that variant. 0:05:42.920 --> 0:05:46.400 We're anticipating the same thing with with O Macron that 0:05:46.480 --> 0:05:48.640 we will see some bumps in the recovery, and it depends. 0:05:48.760 --> 0:05:50.839 We have dirty brands in a hundred and forty countries, 0:05:50.880 --> 0:05:52.960 so we'll see some bumps, but we don't think it's 0:05:52.960 --> 0:05:56.320 going to stop the recovery. Marriott president Stephanie Leonards made 0:05:56.320 --> 0:05:59.159 the comments in an interview on Bloomberg Television. Shares of 0:05:59.240 --> 0:06:01.559 Marriott Or trade near an all time high to start 0:06:01.600 --> 0:06:05.039 the year. Kron continues to impact the workplace, Nathan. Bank 0:06:05.040 --> 0:06:07.800 of America is the latest company pushing back return to 0:06:07.800 --> 0:06:10.920 office plans, and we get the story from Bloomberg's Charlie Pillett. 0:06:11.440 --> 0:06:15.080 The company encouraged its US employees to work remotely through 0:06:15.160 --> 0:06:18.960 the week starting January tenth. Does the bank evaluates its 0:06:19.000 --> 0:06:22.200 next move this according to an internal memo the firmhood 0:06:22.240 --> 0:06:25.520 earlier advised workers to stay home through at least this week. 0:06:25.880 --> 0:06:28.960 In the memo, the bank also continued to encourage staff 0:06:29.000 --> 0:06:33.360 to get fully vaccinated and receive booster shots, stopping short 0:06:33.600 --> 0:06:37.680 of implementing a full mandate in New York. Charlie Pellett 0:06:37.680 --> 0:06:41.040 Bloomberg daybreak, All right, Charlie, thank you. In the markets today, 0:06:41.080 --> 0:06:44.919 the turbo charged worlds of cryptocurrencies and memestocks have collided. 0:06:44.960 --> 0:06:48.120 Shares of game Stopper up more than eighteen percent in 0:06:48.160 --> 0:06:51.040 early trading. That's after the company announced plans to launch 0:06:51.040 --> 0:06:53.640 a market place for non fungible tokens by the end 0:06:53.680 --> 0:06:55.839 of the year. The company is also in talks with 0:06:55.880 --> 0:06:59.240 crypto and blockchain companies about which tokens could be used 0:06:59.480 --> 0:07:02.839 on the form. SMP futures are up five points. Staff 0:07:02.880 --> 0:07:06.479 futures of forty NASTACK futures higher by four points. The 0:07:06.520 --> 0:07:10.640 tenure treasuries little change, the yield one point seven. Looking 0:07:10.640 --> 0:07:14.240 at bitcoin right now trading at forty two four hundred dollars. 0:07:14.240 --> 0:07:17.480 Straight ahead, your latest local headlines and a check of sports. 0:07:17.520 --> 0:07:24.960 This is Bloomberg five oh seven on Wall Street. It 0:07:25.040 --> 0:07:28.080 is snowing degrees in Central Park. We've got a lot 0:07:28.080 --> 0:07:31.160 of jack knife tractor trailers already with this storm coming down. 0:07:31.200 --> 0:07:33.920 Peter Van is at a crucial traffic report coming up 0:07:33.920 --> 0:07:36.080 for you in just a few minutes. First Michael Barr 0:07:36.080 --> 0:07:38.280 with what else is going on in New York and 0:07:38.440 --> 0:07:41.200 around the world. Good morning, Michael, Good morning, Nathan. Bards 0:07:41.200 --> 0:07:44.360 of the Tri State area are under a winter storm morning. 0:07:44.440 --> 0:07:47.120 The fast moving system is expected to dump three to 0:07:47.160 --> 0:07:49.640 six inches of snow by the end of the morning, 0:07:49.640 --> 0:07:52.240 but it will make the commute a mess. As you've 0:07:52.280 --> 0:07:56.480 already heard, emergency preparations are underway, but with record COVID 0:07:56.520 --> 0:08:00.040 cases and isolation rates, some departments are working at a 0:08:00.080 --> 0:08:04.640 disadvantage against the incoming weather. Edward Grayson, the commissioner of 0:08:04.680 --> 0:08:08.120 New York's Department of Sanitation, says he believes they'll have 0:08:08.240 --> 0:08:11.160 enough staff to prepare for the storm, but they'll have 0:08:11.240 --> 0:08:15.240 to extend shifts and work around current shortages, just like 0:08:15.280 --> 0:08:17.440 all the every other city. And see, we've been definitely 0:08:17.520 --> 0:08:20.200 hit hard in this recent wave and up taking COVID cases. 0:08:20.640 --> 0:08:24.360 Right now, we're about staffing outage sanitation to mission of 0:08:24.440 --> 0:08:27.200 Grayson says, for now they will be operating in twelve 0:08:27.200 --> 0:08:30.360 hours shifts. It is sentencing day for three white men 0:08:30.400 --> 0:08:34.240 convicted of murder in the deadly Chasen shooting of Ahmad Aubrey. 0:08:34.280 --> 0:08:38.040 In November. A Georgia jury found father and son greg 0:08:38.080 --> 0:08:41.800 and Travis McMichael and their neighbor William Bryan, guilty of 0:08:41.880 --> 0:08:45.200 murder and other crimes in the February killing of the 0:08:45.200 --> 0:08:48.880 twenty five year old black man. University of Georgia law 0:08:48.960 --> 0:08:53.760 chair Emeritus Ron Carlson says Superior Court Judge Timothy Walmsley 0:08:53.800 --> 0:08:57.760 has limited options because murder carries a mandatory life sentence 0:08:57.760 --> 0:09:01.240 in Georgia. The judges options are very narrow, but these 0:09:01.240 --> 0:09:04.720 are very important distinctions. Does he levy a sentence of 0:09:04.840 --> 0:09:08.560 life without parole or life with parole? Carlson with the 0:09:08.640 --> 0:09:11.800 University of Georgia says the jury's verdict sent a message 0:09:11.840 --> 0:09:15.600 that vigilante justice will not be tolerated. Former New York 0:09:15.600 --> 0:09:18.160 Governor Andrew Cuomo is set to make a virtual appearance 0:09:18.200 --> 0:09:21.880 today before an Albany judge. Prosecutors are moving to dismiss 0:09:21.960 --> 0:09:25.000 the only criminal charge filed against the Democrat in connection 0:09:25.280 --> 0:09:28.439 with the sexual harassment allegations that drove him from office. 0:09:29.160 --> 0:09:32.400 Accused Cuomo of groping an aid in the executive mansion 0:09:32.440 --> 0:09:36.720 in December of eight months before he resigned. Online sports 0:09:36.760 --> 0:09:39.520 betting in New York is a day away from reality. 0:09:40.080 --> 0:09:43.080 The New York Gaming Commission says that it has approved 0:09:43.080 --> 0:09:46.880 mobile operator licenses for Caesar's Draft Kings, Fan Duel and 0:09:46.960 --> 0:09:50.800 bet Rivers Rushed Streets Interactive. They can begin taking wagers 0:09:50.840 --> 0:09:54.160 as of nine am local time Saturday. Global News twenty 0:09:54.160 --> 0:09:56.560 four hours a day on a r and on Bloomberg Quicktake, 0:09:56.600 --> 0:09:59.719 powered by more than seven journalists analysts more than a 0:09:59.800 --> 0:10:02.320 hund twenty countries. I'm Michael Barr, this is Bloomberg. Nathan 0:10:02.440 --> 0:10:09.040 Thank you Michael. Almost five ten on Wall Street, time 0:10:09.080 --> 0:10:11.280 for the Bloomberg Sports up take, good morning John's Statshop, 0:10:11.440 --> 0:10:14.720 Good morning Nathan, and absolutely epic game at the Garden. 0:10:14.760 --> 0:10:17.680 This game had everything. A big comeback Knicks trail the 0:10:17.679 --> 0:10:20.120 Celtics by twenty five, and the first half they were 0:10:20.160 --> 0:10:22.520 still down by eight team in the third quarter. A 0:10:22.679 --> 0:10:26.320 tremendous individual performance the ex Celtic Kevin Fournier, who had 0:10:26.360 --> 0:10:29.920 already had two thirty two point games roses Boston, went 0:10:29.960 --> 0:10:32.559 for a career I forty one. He tied a Knicks 0:10:32.600 --> 0:10:34.800 record with ten three pointers. And this game had an 0:10:34.800 --> 0:10:38.439 amazing finished fourth half. Court left one point five ago 0:10:38.480 --> 0:10:40.360 a tie game and one of five to Barrett one 0:10:40.400 --> 0:10:42.719 triple right away, freak for the win, Bank for is 0:10:42.840 --> 0:10:46.560 good one. He backed in Barrett backed in in, had 0:10:46.600 --> 0:10:50.199 the Nicks trip one football game at the Buzzer and 0:10:50.240 --> 0:10:52.959 called it on w EPN. Barrett, who had scored thirty 0:10:53.040 --> 0:10:54.760 two the other night, was having a bad game. He 0:10:54.800 --> 0:10:57.600 had shot three or fourteen before hitting that game winner. 0:10:57.679 --> 0:11:00.559 These two teams play again tomorrow night in Boston, and 0:11:00.640 --> 0:11:03.920 let's play Milwaukee tonight in Brooklyn, which means Kyrie Irving 0:11:04.000 --> 0:11:07.160 cannot play due the vaccine mandate. You gotta wait until 0:11:07.160 --> 0:11:09.520 the next road game, which is Monday in Portland. The 0:11:09.640 --> 0:11:12.439 Rangers on the road for five straight games. Not a 0:11:12.520 --> 0:11:15.160 good start for the trip. Five one loss in Vegas. 0:11:15.240 --> 0:11:18.559 Rangers only had nineteen shots on goal. Devil's beat Columbus 0:11:18.600 --> 0:11:20.400 three to one. Jack news In on all three a 0:11:20.480 --> 0:11:23.640 goal plus two assists. Eric Schabez, just hired to be 0:11:23.720 --> 0:11:27.400 the Yankees assistant hitting coach, has already resigned. He got 0:11:27.480 --> 0:11:31.160 a better job as the Mets hitting coach. Season finales 0:11:31.160 --> 0:11:33.439 with the Giants and Jets Sunday, the Giants limped to 0:11:33.480 --> 0:11:36.520 the finished host in Washington. Patriots fans will root for 0:11:36.600 --> 0:11:39.360 the Jets to upset the Bills in Buffalo. New England 0:11:39.400 --> 0:11:41.559 needs a win in Miami and a Buffalo loss to 0:11:41.679 --> 0:11:44.720 win the a f c NS. John stash Award, Bloomberg Sports, 0:11:44.800 --> 0:11:48.360 Nathan thank you, John SMP futures up eight points, Stown 0:11:48.400 --> 0:11:51.840 futures up forty eight NASTAC futures up twenty five points. 0:11:51.920 --> 0:11:54.600 The tenure Treasury little change, the yield one point seven 0:11:54.720 --> 0:11:58.000 two percent ahead of the December payrolls report. Will look 0:11:58.040 --> 0:12:01.280 ahead to it with bems in your economist Jennifer Lee 0:12:01.840 --> 0:12:08.520 just to have this is Bloomberg Bloomberg eleven three oh 0:12:08.559 --> 0:12:10.960 whether it's snowing, went to weather Advisory till noon today 0:12:11.000 --> 0:12:13.840 with behind your thirty five mostly sunny, low thirties. Tomorrow 0:12:13.920 --> 0:12:17.960 will be near forty on Sunday with rain twenty nine 0:12:18.000 --> 0:12:25.280 degrees in Central Park markets. Headlines and breaking news twenty 0:12:25.320 --> 0:12:28.160 four hours a day at Bloomberg dot Com, the Bloomberg 0:12:28.200 --> 0:12:31.760 Business Out and at Bloomberg Quick Take. He's a Bloomberg 0:12:31.840 --> 0:12:41.480 Business Flash and I'm Karen Moscow Futures hire ahead of 0:12:41.520 --> 0:12:44.600 today's jobs report, and we check the markets every fifteen 0:12:44.600 --> 0:12:47.040 minutes throughout the trading day on Bloomberg Guess and p 0:12:47.240 --> 0:12:50.559 futures up eight points down, futures of forty six and 0:12:50.679 --> 0:12:53.760 Nasdaq Future is now higher, up twenty one The decks 0:12:53.800 --> 0:12:56.200 in Germany's down at third of upper sent the tenure 0:12:56.240 --> 0:12:58.800 Treasury that'll change yield one point seven two per cent 0:12:59.200 --> 0:13:02.280 yield on the two year point eight seven percent NIMEX 0:13:02.280 --> 0:13:05.000 Scrude oil is of one percent of eighty four cents 0:13:05.040 --> 0:13:07.840 at eighty dollars thirty cents of barrel comes Gold up 0:13:07.880 --> 0:13:10.080 two tens per cent or three dollars seventy cents at 0:13:10.120 --> 0:13:13.800 seventeen ninety announced the euro one point one three one 0:13:13.880 --> 0:13:16.280 six against the dollar, British pound one point three five 0:13:16.400 --> 0:13:19.559 five three begins at one fifteen point eight to and 0:13:19.679 --> 0:13:22.720 checking Bitcoin this morning moving lower at forty two thou 0:13:22.960 --> 0:13:26.000 three hundred dollars and as a Bloomberg business flash. Now 0:13:26.080 --> 0:13:28.640 Here's Michael Barr with more on what's going on around 0:13:28.679 --> 0:13:31.480 the world. Muchel, Good morning, Good morning, Karen. The Supreme 0:13:31.559 --> 0:13:34.439 Court is taking up two major Biden administration efforts to 0:13:34.480 --> 0:13:38.160 bump up the nation's vaccination rate against COVID nineteen. The 0:13:38.320 --> 0:13:41.280 Justices are hearing arguments today about whether to allow the 0:13:41.320 --> 0:13:46.120 administration to enforce a vaccine or testing requirement that applies 0:13:46.160 --> 0:13:49.760 to large employers and a separate vaccine mandate for most 0:13:49.800 --> 0:13:53.240 healthcare workers. The White House and US Postal Service are 0:13:53.280 --> 0:13:57.040 making final plans to deliver five hundred million coronavirus test 0:13:57.160 --> 0:14:00.640 kits to households. The Washington Post reports of officials seek 0:14:00.720 --> 0:14:04.280 to begin shipments by the middle of January. In the NBA, 0:14:04.400 --> 0:14:06.640 the Next beat the Celtics one oh eight, one oh five, 0:14:06.760 --> 0:14:10.559 The Warriors lost, The Devil's won, The Rangers and Bruins 0:14:10.640 --> 0:14:13.480 lost Global news twenty four hours a day on air 0:14:13.600 --> 0:14:16.560 and on Bloomberg Quick Take, powered by more than twenty 0:14:16.600 --> 0:14:19.640 seven hundred journalist and analysts more than a hundred twenty countries. 0:14:19.840 --> 0:14:23.040 I'm Michael Barr, and this is Bloomberg NACOLN. Thanks Michael. 0:14:23.080 --> 0:14:25.600 It's five nineteen on Wall Street Live from the Bloomberg 0:14:25.640 --> 0:14:29.080 Interactive Broker Studios. This is Bloomberg Daybreak and it is 0:14:29.320 --> 0:14:32.400 Jobs Friday. Here to look ahead to the final payrolls 0:14:32.440 --> 0:14:36.560 report of one with us is Jennifer Lee, senior economist 0:14:36.680 --> 0:14:39.640 at BEMO Capital Markets. Jennifer, good to have you back 0:14:39.720 --> 0:14:43.080 with us this morning. The survey number is forty seven 0:14:43.160 --> 0:14:46.360 thousand new jobs added in December. The whisper number on 0:14:46.360 --> 0:14:49.240 the Bloomberg terminals a half million. Are you looking for 0:14:49.240 --> 0:14:53.480 an upside surprise? Good morning? You know what we are. 0:14:53.560 --> 0:14:56.480 Our fishal call is actually just about three hundred thousand 0:14:56.640 --> 0:14:59.840 and uh. I think the ADP report that I was 0:15:00.000 --> 0:15:03.360 out on Wednesday may have um push expectations up with 0:15:03.440 --> 0:15:06.360 its sizeable eight hundred seven thousand increase, but you know 0:15:06.480 --> 0:15:09.480 that sometimes throws everyone for a loop. UM. I think 0:15:09.560 --> 0:15:12.280 anything over three hundred thousand would be considered a decent 0:15:12.440 --> 0:15:15.560 enough number to keep the FED UM on its current 0:15:15.640 --> 0:15:17.720 path right now. But you know, I kind of feel 0:15:17.720 --> 0:15:19.840 like it's almost like roundhog Day, you know, and in 0:15:19.920 --> 0:15:22.320 many respects, you know, because month after month we're always 0:15:22.360 --> 0:15:24.880 looking for some sort of a gain in jobs to 0:15:24.920 --> 0:15:26.960 help us determine which way the FED is gonna what 0:15:27.080 --> 0:15:28.880 the Fen's gonna do, we're not gonna do. And I 0:15:28.920 --> 0:15:31.240 feel like things are a little bit different now with UM, 0:15:31.520 --> 0:15:33.880 with with the Central Bank being more aggressive, and with 0:15:34.000 --> 0:15:35.760 que ready to be put to bed in March, and 0:15:35.960 --> 0:15:39.760 I think this will all make the March meeting live. Well, 0:15:39.800 --> 0:15:42.640 what makes you lower than consensus? What are you looking at? 0:15:43.640 --> 0:15:45.360 I think that's just the fact that you know, there 0:15:45.480 --> 0:15:48.600 is still a lot of hesitation on on on returning 0:15:48.680 --> 0:15:52.040 to the workforce UM. But of course, at the same time, 0:15:52.240 --> 0:15:55.160 you know you've got you're being entice, but you know 0:15:55.240 --> 0:15:56.680 the fact that you know you need a job, and 0:15:57.040 --> 0:15:59.800 and there's all these different options out right now, for 0:16:00.120 --> 0:16:03.800 with many employers offering a lot more incentives, a lot 0:16:03.880 --> 0:16:07.440 more you know, higher salaries, more vacations, more benefits, and 0:16:07.480 --> 0:16:09.760 all that jets entice you over because there is such 0:16:09.840 --> 0:16:12.480 a shortage right now. But I think, you know, and 0:16:12.760 --> 0:16:15.440 if if we again, I think threehund thousand is nothing 0:16:15.640 --> 0:16:18.400 is maybe below consensus, but I think it's still considered 0:16:18.400 --> 0:16:20.960 a pretty sizeable game. So then, are you looking for 0:16:21.200 --> 0:16:25.600 evidence of wage inflation in this report? We are, I mean, 0:16:25.680 --> 0:16:28.480 we're that's uh definitely one of one of the factors. 0:16:28.520 --> 0:16:30.760 And again that's the probably gonna be the biggest thing, 0:16:31.000 --> 0:16:34.480 uh that will again bring UM workers back into into 0:16:34.520 --> 0:16:36.520 the labor force. And we are starting we have been 0:16:36.520 --> 0:16:39.680 seeing that months after months. Um, we're seeing that in 0:16:39.760 --> 0:16:42.560 other indicators as well, just you know, just the broader 0:16:42.600 --> 0:16:45.280 Personal Income survey with wages and salaries and of course 0:16:45.320 --> 0:16:47.600 the e c I as well. And you know, when 0:16:47.640 --> 0:16:49.479 you see all that we read about, all the anecdotes 0:16:49.520 --> 0:16:51.480 that we see from the I s M surveys that 0:16:51.560 --> 0:16:54.800 we saw this week, you know, um, again the biggest 0:16:54.840 --> 0:16:58.640 complaint is still tons of shortages of not just materials 0:16:58.720 --> 0:17:00.800 and widgets, but there's just you know, no let up 0:17:00.880 --> 0:17:03.720 in and in shortages of people or human beings and uh, 0:17:04.080 --> 0:17:05.639 you know, to quota a famous singer, you know there 0:17:05.680 --> 0:17:08.960 are people who need people. Yeah, where are you seeing 0:17:09.119 --> 0:17:13.920 some of the biggest sectors that are showing evidence of 0:17:14.400 --> 0:17:17.800 slack in the market. I think, you know, especially King 0:17:18.040 --> 0:17:21.040 looking at the the labor of the you know, like 0:17:21.160 --> 0:17:24.960 the leisure at hospitality for example, that's still an area 0:17:25.119 --> 0:17:27.280 that you know that is still seeing a lot of 0:17:28.280 --> 0:17:32.000 um um shortages of workers. And that's where you know 0:17:32.280 --> 0:17:34.240 what you're getting me themum wage and you know, helping 0:17:35.359 --> 0:17:37.920 like lifting wag the minimum wage would help obviously, but 0:17:38.320 --> 0:17:40.280 you know, it's just it's not it's not an easy job, 0:17:40.400 --> 0:17:44.520 especially now with COVID and being um enforcing, masks wearing 0:17:44.520 --> 0:17:46.439 and that sort of thing. So that's where you're going 0:17:46.520 --> 0:17:50.439 to see a lot more employers trying to lift wages 0:17:50.480 --> 0:17:53.240 even further just to bring workers back. So are you 0:17:53.320 --> 0:17:55.399 looking for real evidence that there may be an O 0:17:55.560 --> 0:17:59.879 Macron effect on the labor market given how many people 0:18:00.080 --> 0:18:02.800 might still be on the sidelines. I think we're going 0:18:02.920 --> 0:18:06.280 to see at least the first emergence of the strain 0:18:06.440 --> 0:18:10.479 during this reporting period, right. Um. I don't know how 0:18:10.880 --> 0:18:13.200 it might be a bit early for for this reporting period, 0:18:13.240 --> 0:18:14.879 but I think for sure it's definitely going to be 0:18:15.000 --> 0:18:17.520 showing up. I think you'll probably show up more in 0:18:17.600 --> 0:18:20.440 the January reports. You know, so we'll get the numbers 0:18:20.600 --> 0:18:23.440 and of course in early February, but for sure, you know, 0:18:24.000 --> 0:18:27.359 the COVID in general, if he has his fingerprints all 0:18:27.400 --> 0:18:30.040 over this, all over all the economic reports, and I 0:18:30.080 --> 0:18:33.280 don't think that's going to be going away anytime soon unfortunately. 0:18:33.720 --> 0:18:35.879 So in our last minute here, if we get a 0:18:36.000 --> 0:18:38.960 lower than expected number, what could that mean for the 0:18:39.040 --> 0:18:42.840 FEDS policy path? Well, I will always be looking of 0:18:42.960 --> 0:18:45.280 me Obviously the headline is always very important, but I 0:18:45.320 --> 0:18:47.800 always like to look at the revisions and that sort 0:18:47.800 --> 0:18:50.200 of gives you, like the broader look on on the 0:18:50.320 --> 0:18:53.080 overall labor market, and you know so far, you know, 0:18:53.160 --> 0:18:56.199 if you've got you he has upward revisions. Um, if 0:18:56.240 --> 0:18:59.120 you've got you know, decent gains and across all sectors, 0:18:59.520 --> 0:19:01.560 you know, I think that would still reflect overall a 0:19:01.680 --> 0:19:04.080 strong labor market. And right now I think for the 0:19:04.160 --> 0:19:07.480 Federal Reserve it's almost looking for a reason not to 0:19:07.760 --> 0:19:11.000 raise rates earlier than expected. But again, if it's strong, 0:19:11.040 --> 0:19:13.600 I think it's would be a great result and win 0:19:13.880 --> 0:19:17.520 for everyone. And according to BMO, three hundred thousand would 0:19:17.560 --> 0:19:22.040 be a strong number. Jennifer Lee, Senior Economists, BEMO Capital Markets. Again, 0:19:22.119 --> 0:19:25.000 thanks for your insights ahead of the release of the 0:19:25.080 --> 0:19:28.439 December payrolls report, coming out just about three hours from now. 0:19:28.520 --> 0:19:31.640 Of course, we will have full coverage throughout the day 0:19:31.720 --> 0:19:35.200 here on Bloomberg Radio and live reaction from Labor Secretary 0:19:35.280 --> 0:19:38.280 Marty Walsh that's coming up later on this morning after 0:19:38.359 --> 0:19:40.600 the release of the payrolls reports, so tune back into 0:19:40.640 --> 0:19:44.000 Bloomberg Radio and check it out on Bloomberg Television once 0:19:44.080 --> 0:19:47.480 that interview comes around. In the meantime, SMP futures are 0:19:47.600 --> 0:19:50.120 up almost nine points, stal future is up fifty one, 0:19:50.240 --> 0:19:53.879 NASTACK futures higher by twenty seven points. No change to 0:19:54.000 --> 0:19:56.600 the tenuere Right now, the yield is at one point 0:19:56.760 --> 0:20:08.000 seven to per cent. You're listening to Bloomberg Daybreak Bloomberg 0:20:08.040 --> 0:20:11.360 eleven three oh Weather is winter weather advisory till noon 0:20:11.440 --> 0:20:14.080 today with another inch or so snow possible on your 0:20:14.119 --> 0:20:17.639 thirty five degrees sunshine tomorrow, low thirties rain and a 0:20:17.720 --> 0:20:25.280 high near forty on Sunday. Broadcasting live from the Bloomberg 0:20:25.400 --> 0:20:29.840 Interactive Broker Studio in New York, Bloomberg Elving Free to Washington, 0:20:29.920 --> 0:20:34.000 d C. Bloomberg to Boston, Bloomberg one O six one 0:20:34.119 --> 0:20:38.000 to San Francisco, Bloomberg sixteen, to the country Sirius XM 0:20:38.080 --> 0:20:41.280 Cho one nineteen and around the globe to Bloomberg Business 0:20:41.359 --> 0:20:45.400 apt in Bloomberg Radio dot Com. This is Bloomberg Daybreak. 0:20:51.119 --> 0:20:53.280 It's five thirty on Wall Street. Good morning. I'm Nathan 0:20:53.320 --> 0:20:56.280 Hager and I'm parin Moscow and we're just about four 0:20:56.359 --> 0:20:58.640 hours away from the open of US trading. Let's get 0:20:58.680 --> 0:20:59.879 you have to date on the news you need to 0:21:00.000 --> 0:21:03.680 know at this hour. Snow is blanketing the Northeast this morning. 0:21:03.720 --> 0:21:06.240 We got more on that coming up with Bloomberg Meteorologist 0:21:06.359 --> 0:21:09.760 Rob Caroline. But first, futures are higher ahead of the 0:21:09.840 --> 0:21:13.760 December jobs report. Economists are forecasting a rebound from last 0:21:13.840 --> 0:21:16.520 month with the gain of four hundred forty seven thousand jobs. 0:21:16.880 --> 0:21:20.400 Begin more from Bloomberg's Vine del judas US payroll broke. 0:21:20.520 --> 0:21:23.160 Mr Wall Street forecasts in November with a tepid game 0:21:23.320 --> 0:21:27.080 just two hundred ten thousand, the weekest showing since December twenty. 0:21:27.400 --> 0:21:31.000 Bloomberg Economics says the COVID nineteen Murcroun variant could weigh 0:21:31.040 --> 0:21:34.120 on the December data. At the same time, weekly jobless 0:21:34.160 --> 0:21:36.720 claims remained near a half century low, running at two 0:21:36.800 --> 0:21:40.200 hundred seven thousand, and US job openings have been running 0:21:40.240 --> 0:21:44.959 at all time High's Bloomberg Daybreak, al Right, Vinnie, thanks traders. 0:21:45.000 --> 0:21:47.040 We'll be watching that job's data for any hints on 0:21:47.160 --> 0:21:50.680 future FED policy. St. Louis FED President Jim Bullard's weighing in. 0:21:50.800 --> 0:21:53.479